Groww falls 5% as JM Financial projects 13% downside; initiates with 'Sell'
Groww share price fell as much as 4.87 per cent to ₹164.5 per share on the National Stock Exchange (NSE)
 "Groww falls 5% as JM Financial projects 13% downside; initiates with 'Sell'")
Groww share price today
Groww's parent, Billionbrains Garage Ventures, share price tumbled nearly 5 per cent on Monday as JM Financial started coverage on the stock with a 'Sell' rating, projecting a 13.5-per cent downside. The scrip fell as much as 4.87 per cent to ₹164.5 per share on the National Stock Exchange (NSE).
As of 9:47 AM, Groww share price was trading 3.78 per cent down at ₹166.4 per share, compared to a 0.05 per cent decline in the Nifty 50. The counter has seen a trade of 6.2 million shares on NSE so far.
Since its listing on November 12, 2025, Groww share price gained 31.67 per cent, as against a 1.6 per cent decline in the Nifty 50 index during the same period.
Why did Groww share price fall today?
Billionbrains Garage Ventures share price fell on Monday as JM Financial initiated coverage on the stock with a 'Sell' rating. The brokerage has a target price of ₹144 per share, which implies a 13.5-per cent downside from the current level.
In a separate note, JM Financial said that the Reserve Bank of India’s updated Capital Market Exposure (CME) norms will significantly tighten the credit environment for stock brokers. The brokerage believes trading costs will increase for stock brokers because of a 100 per cent collateral requirement for funding, and a 40 per cent haircut on shares for collateral value calculations. This also weighed on the sentiment for Groww stock.
Why did JM Financial initiate coverage on Groww with 'Sell' rating?
Billionbrains Garage Ventures saw 88 per cent of the total revenue coming from the broking business, including a margin trading facility (MTF), float from client funds, in the second quarter of the financial year 2025 (Q2FY25), despite orginating as a wealth manager business.
MTF is a low-hanging fruit, but wealth and consumer credit will need focused execution, according to JM Financial.
JM Financial expects that over 80 per cent of its revenue will continue to come from the broking business till the financial year 2028. Its lending and wealth management businesses will contribute less than 20 per cent to the revenue.
In this scenario, ancillary products may not be able to offset any sharp cyclical or regulatory-action-led downturn in Billionbrains Garage Ventures’ core broking business, even if consumer credit and wealth scale, the brokerage said.
Groww’s number of futures and options (F&O) orders reduced sequentially by 15 per cent and 21 per cent, respectively, in the third and fourth quarters of the financial year 2025 after the Securities Exchange Board of India (Sebi) raised the contract size to ₹15 lakh and ₹20 lakh from ₹5 lakh and ₹10 lakh. Given constant scrutiny, further action cannot be ruled out , which may impact Groww’s business model, the brokerage said.
JM Financial estimates that Groww will likely report 45 per cent profit after tax (PAT) and 34 per cent revenue compound annual growth rate (CAGR) over the financial years 2026 and 2028.
The brokerage values the Groww one standard deviation (1SD) above Angel One’s historical price-to-earnings (PE), at 21 times financial year 2028 earnings-per-share (EPS) estimates of ₹7.
Another key risk is that the ability of Billionbrains Garage Ventures’ management to expand remained untested, JM Financial said. "While Groww has started and scaled new products, its ability to integrate Fisdom, and other potential partners as
it scales its lending and wealth/asset management businesses remains untested."
Groww started as a platform to provide a solution for wealth management for aspirational users. On its platform, customers invested in the direct plans of mutual funds and saw their wealth compound with equity markets, JM Financial said.
However, when the company launched its broking business in the financial year 2021, the client base quickly adopted the product, helping Groww to steadily emerge as the market leader in terms of NSE active clients.
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